Lehman Brother’s European real estate portfolio has been valued at just $1 billion (€ 778 million) by administrators at PricewaterhouseCoopers – $14 billion below the book value.
The figure shows how far real estate values have fallen in the region.
PwC said in September that the value of the European assets was around $15 billion. However, Dan Schwarzman, joint administrator, said in a staement today: “Falling property values in the world markets are placing many property assets in stress and the Lehman portfolio is no different, meaning the value of the real estate is actually less than $1 billion.
The administrator also said that excluding a small number of high profile assets such as Coeur de La Defense in Paris, the majority of the assets were no more than €100 million in value.
More than 300 expressions of interest in the properties have been made, the accountant added.
PwC was appointed administartor following Lehman Brothers collapse in September.
Today’s revelation follows a similar valuation downgrade by KPMG, which was appointed administrator for Lehman’s Asia business.
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